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| Author: | Veld, K. van't Plantinga, A. |
| Title: | Carbon sequestration or abatement? The effect of rising carbon prices on the optimal portfolio of greenhouse-gas mitigation strategies |
| Journal: | Journal of Environmental Economics and Management
2005 : JUL, VOL. 50:1, p. 59-81 |
| Index terms: | forestry industry gas industry prices |
| Language: | eng |
| Abstract: | This paper shows analytically that if carbon price increases over time, it becomes optimal to delay certain sequestration projects, whereas the optimal timing of energy-based abatement projects remain unchanged. It is found that a modest, 3% rate of price increase results in about a 60% reduction in the optimal sequestration share relative to constant-price pprojections. |
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